The brand has excellent marketing campaigns and, Recently, a former employee accused Nike of, Multiple female employees reported that they had complained to the HR but saw no action being taken from their part. Nike’s primary goal is to supply athletes with exceptional products and wearable that aids them in better sports performance. In the FY 2018 the company was able to generate $4 Billion revenue. Nike Competition Competitors Below are the top 12 Nike competitors: 1. Copyright © 2020 Business Strategy Hub. Thanks Taku, I am glad you liked our analysis. 2. Author: S.K Gupta First published: December 17, 2018 Last updated: Oct 06, 2020. It designs and sells shoes for a variety of sports including baseball, golf, cheerleading, volleyball, tennis and football. Contradicting Strategies: Nike pledged to shift all its facilities to 100% renewable energy with net-zero carbon emissions under the “Move to Zero” scheme. Nike is an American multinational company that deals in the designing, manufacturing, marketing and selling of sports footwear, apparel, equipment and other related accessories. Competition in the athletic wear industry has increased a lot. Low Manufacturing Cost – Most of Nike’s footwear is manufactured in foreign countries. I am guessing the presentation is for school? New Balance. Did you find this article interesting? Nike has the annual revenue of $36.4 billion in financial year 2018 with a market capitalization of $120.3 billion and 11000 stores worldwide. Reebok, Runtastic and TaylorMade. While the strategy is great and welcomed, it contradicts Nike’s strategy that favors innovation over sustainability. It’s a great help. Every company today must effectively deal with its competition unless it is a monopoly. • List of NKE Competitors With net margin of 14.33 % company achieved higher profitability than its competitors. Adidas. The paper presents Nike’s greatest strengths and weakness and evaluates general environment as well as forces of competition. Nike competitive analysis 1. Nike is the world’s no. It portrays an essential appendage to conduct an industry analysis. Deloitte: Mission Statement | Vision Statement| Values | Culture, Starbucks Mission Statement, Values, Principles, & Sustainability Goals, Uber: Mission Statement | Cultural Norms | Principles | Philosophy (2020), Amazon: Mission | Leadership Principles | Philosophy (2020), Nordstrom: Mission | Vision | Core Values (2020), Your favorite Nikes might be made from forced labor. Asics Adidas brand valuation is $14.3 billion and revenue amounted for 21.218 billion (Euro). Its Headquarter is situated in Manhattan Beach, California. NIKE FIVE FORCES ANALYSIS. Under Armour products are used by all levels of college and professional players as well as general consumers who love active lifestyle. Reebok manufactures variety of assortment but according to Reebok, customer top rated product is Reebok CrosFit Nano 8. Nike, Inc. is a company rooted in competition. can i know the name? Fila. Extensive global production and … nike.com Competitive Analysis, Marketing Mix and Traffic . Bata. Lululemon is a major competitor of Nike and Under Armour. I need this info for citations. Nike not only dominates almost half of the United States athletic apparel market, but it is also newly considered as the most valuable sports apparel brand in the world. The Tax Act offset it revenue growth as Nike net income of $1.9 billion as a result of 54% decrease as compared to previous FY 2017. Before we discuss the SWOT analysis of Nike, let us understand a bit of the background of the company Nike. 11. who wrote this article ? Sexual Harassment: Former female employees also pointed out that sexual harassment and misconduct was very common in the company. This creates the perception that Nike is not committed to addressing climate change and its pledge is just a marketing stunt. 10. 4. The company specializes in athletic wear, providing footwear, apparel, athletic equipment, and accessories. 1. The company differentiate its product line with several technical features like heel counters and blended gel inserts. Xu, V. (2020, March 17). Your information is safe and will never be shared. It manufactures casual and sports footwear and apparels. See Nike's revenue, employees, and funding info on Owler, the … Nike vs Adidas: Social media following. In our case the major competitors of Nike are Adidas and Reebok. 6. Puma. It is headquartered in Seoul, South Korea. Competitor analysis begins with identifying present as well as potential competitors. (The manufacturing practices of Nike and its competitors) 4. In 2005, Adidas acquired Reebok for $3.8 billion. ” Nike has a healthy dislike of its competitors such as Reebok and Addidas. While Adidas markets itself as a streetwear sneakers with celebrity collaborations like Kanye West and Beyonce, Nike’s marketing is more sports-focussed. Tell us what you think? Save my name, email, and website in this browser for the next time I comment. We respect your privacy. From releasing new product lines to building new brands, to outsourcing, and establishing a global presence alone is an extraordinary achievement. Competitive Analysis Nike global presence is another key strength. Nike is headquartered in Beaverton, Oregon, USA. Alexa's competitive analysis tools help you identify competitor strengths and weaknesses you can leverage to get the edge. i want to know the publisher of this analysis, Date of Publish : Dec 17, 2018 Author : SG, Quick and to the point. If the relative market share which is above 33% therefore it is considered to be strong since Nike’s in this case has a share of 47% its relative market share will be considered the strongest from its competitors. Nike has grown exponentially in the last decade. – SG. UA generated $5 billion revenue with a market capitalization of $7.7 billion. Reebok is another competitor of Nike Inc. Reebok is a footwear and apparel company that designs, manufactures and distributes CrossFit, fitness, running footwear and clothing. New Balance Athletics Inc. also New Balance was founded in 1906 by William J. Riley. The company is also engaged in selling shoes for many outdoor and recreational uses. Nike, Inc. is an American multinational corporation. Nike Background. 12. New Balance is a Multinational Corporation headquartered in Boston, Massachusetrts, United States. Primary Competitors Internal Environment Internal Environment Adidas Iconic logo has 3 other brands (Reebok, TaylorMade, Rockport) Puma growing apparel sales expanding into more sports Under Armour success in sports clothing footwear gaining popularity, began in 2006 New Balance The company started its operations on January 25, 1964 as Blue Ribbon Sports and officially changed the name as Nike Inc. on May 30, 1971. Nike is amongst the top three companies i.e. The recent years have been quite profitable for the brand. Thanks. This component of the SWOT Analysis deals with the internal strategic factors that support business development and competitiveness. Interestingly both the founders of Adidas and Puma were brother and founders of Dassler Brothers Shoes. Here’s why. New Balance has a premium brand image and amongst one of the top Nike competitors. In recent years ASICS running shoes brand is ranked among top footwear brands in the market. Reebok. Its US-based stored and factories are 392. Under Armour is founded in 1996 by Kevin Plank headquartered in Baltimore, Maryland, United States. The company is a major competitor of Nike. It is a manufacturer of skateboard footwear and related apparels and accessories for women, men and children. Join our newsletter today to get updates on the latest posts! Nike’s strengths are the primary drivers of the company’s growth and global leadership in the sports shoes, apparel and equipment market. Skechers is the top performer in United States and one of the top Nike competitors. Nike is among the three top competitors in the world for sportswear and apparel. I have tried to provide a complete list of Nike competitors. Share your thoughts and experiences in the comments section below. Adidas group consist three subsidiaries i.e. Samsung SWOT Analysis 2020 | SWOT Analysis of Samsung, Starbucks SWOT 2020 | SWOT Analysis of Starbucks, Microsoft SWOT Analysis 2019 | SWOT Analysis of Microsoft. The women were left devastated and felt unsafe while working at Nike. Nike is trying to increase the Non-US stores, as a result, the International Converse stores reach to 45. ASICS is the top competitor of Nike. Hey, who is the author of this report and what year was it finalized. Compare Nike to its competitors by revenue, employee growth and other metrics at Craft. The women were left devastated and felt unsafe while working at Nike. It is founded in 1966 and headquartered in Santa Ana California. – Sales Vs Marketing Vs Business Development Explained, Brick and Mortar Business – Meaning, Challenges & Examples, Above the Line ATL, Below the Line BTL, Through the Line TTL Marketing, Product Life Cycle – Definition, Stages, Examples …, Brick and Mortar Business – Meaning, Challenges …. Academia.edu is a platform for academics to share research papers. Fila is a worldwide leading brand among sportswear and footwear brands like Nike, Puma and Adidas. This report is about a competitive analysis watch based on competition in the sportswear industry, dominated by Nike Inc., followed by Adidas and Puma. Thank You. Gupta understands how to create and implement business strategies. Strong brand image 2. Nike have sponsored many renowned sports teams and athletes with its top trademark “Just Do it” and Swoosh logo. Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a “Can Do” company. Deliveroo Business Model | How Does Deliveroo Make Money? S.K. Hi Divya, Most of the information is from Nike’s annual report and few points have embedded hyperlinks for references. One of Nike’s best PR decisions was signing Michael Jordan as a celebrity endorser in 1984. The New York Times conducted interviews with 50 former and present Nike employees to investigate the company culture. Whether it is the sports shoe business or the active sportswear apparel, Nike has always left its competitors wondering about the … The article with the title, Competition comes to a Head for World Cup Sponsors was published on The New York Times on 6th June 2010. Nike sponsors the top athletes and gains valuable coverage through the media. 8. Skechers USA Inc. is a lifestyle and performance footwear brand founded in 1992. Your favorite Nikes might be made from forced labor. Lack of Diversification: Nike’s over-dependence on sporting apparel or lack of diversification is a major weakness. Lot of clarity in the format – the SWOT is explained. Thank you ! The entire. The company considers itself distinctive and authentic with is consumers. Under Armour. Nike is the single largest producer of athletic footwear and apparel, allowing them large cost advantages over competition. This Canadian company granted revenue of $2,648 million in 2018. Rapid innovation processes 3. Nike’s steady competition in the 1980s was Reebok. According to craft.co Lululemon has a capitalization of $17.5 billion. Using for my management program – Leadership & People Management. Woodland. After passing through many ownerships finally purchased by Fila Korea in 2007. Multiple female employees reported that they had complained to the HR but saw no action being taken from their part. Adidas formerly known as Dassler Brother Shoes is the designer, manufacturer and marketer of shoes, clothing and accessories. However, due to the success, Nike has gotten the company now provides athleisure wear as well. The following points provide you a bit of Nike’s background: The company is known with the name Nike Inc. Nike was established during the year 1967 and is headquartered in Oregon, United States. He is passionate about analyzing and writing about businesses. finding a solution against these environmental issues. Comparing the results to its competitors, Nike Inc reported Total Revenue decrease in the 3 quarter 2020 year on year by -0.62 %, faster than overall decrease of Nike Inc 's competitors by -7.43 %, recorded in the same quarter. Some of the most notable competitors against Nike include Adidas, Reebok (which Adidas acquired in 2006), Puma, Under Armor, H&M, and Lululemon. Nike, Inc. is an American multinational corporation. Nike has no factories. The company produces athletics shoes, sportswear, equipment and apparels. Nike's top competitors are Adidas, Anta Footwear Company Limited and ASICS. Larger companies tend to have major economies of scale over smaller companies in areas such as distribution and marketing. 7. If the crisis discourages sporting events for longer, Nike’s losses can be catastrophic. The Nike SWOT analysis, highlights the biggest positive point of the company’s strength, i.e., its constant ability to innovate something new. It is having more than 73000 employees. It’s to easy to understand and explain to others.. The entire controversy has significantly affected the company’s image. Competitive Analysis The chief competitors to Nike are Adidas, Reebok, Under Armor and Puma and the minor competitors are ASICS and VANS. Fila is another sportswear manufacturing company and also a top competitor of Nike. The primary business activity of the company is Rubber and Plastics Footwear (SIC code 3021). The following strengths are the most notable in the case of Nike Inc.: 1. Phil Knight and Bill Bowerman probably could not have imagined in 1962 to what degree their $500 investments would yield in 2000. Nike has signed top athletes in the sports of Football, Basketball, Soccer, Baseball, Cycling, Golf, Tennis, Skateboarding, Boxing, Track and Field and Formula 1 Racing. Group 4: Josh Fernino Brent Hare Victor Hemmati Lance Hollister Chris Kerschen Ty Parasiliti Vincent Ukwu 2. Liberty Shoes. How Does Credit Karma Work and Make Money? Unique designs, great product quality, product and process innovation, and marketing have helped it achieve a strong competitive edge. We have conducted a comparative analysis of the balance sheet and the income statement of Nike, Inc. (hereafter – the "Company") for the year 2019 submitted to the U.S. Securities and Exchange Commission (SEC). An industry analysis gives information regarding probable sources of competition (including all the possible strategic actions and reactions and effects on profitability for all the organizations competing in the industry). Good read. In 1948, they were agreed to split the company and founded two companies Adidas and Puma. very grateful analysis. Nike has become one of most recognizable companies in the entire world Nike is now the most popular … Puma is considered as Nike competitor in sport footwear and apparels. Thank you. It’s hard to talk about Nike without the “swoosh” logo, ... Nike, Inc. Here’s a detailed breakdown of Nike SWOT analysis. The company deals in different types of gears for athletes, bikers, sweaty and stretchy pants lovers and also many yoga accessories. ASICS Corporation is a Japanese company that designs, manufactures and sells footwear and sports equipment. Nike offers different categories of products and accessories like sports shoes and apparel for men, women and children. 9. Non-US based store and factors are 790. Here we will conduct a detailed analysis of Nike competitors. Converse. Contact Us | Privacy Policy | Terms of Service, The pharmaceutical industry is one of the primary industries and …, Sale is the process comprised of all the activities that …, Just like the evolution of humankind, humans have witnessed an …, There are three major activities, marketers used in the field …, PESTLE Analysis of The Pharmaceutical Industry, What is Sales? It is Italian-South Korean Company founded in the year 1911 in Italy. The article was enlightening. Puma is a German multinational brand that designs and manufactures variety of athletic and casual footwear, apparels and accessories. In the industry, Nike’s has maximum or main competition; direct competitors of the company include Adidas AG, Puma AG, and New Balance etc. This article was very interesting. Through this SWOT analysis of Nike, you will be able to understand the business model of the brand. Skechers generated $4.5 billion in 2017 and reported 16% sales growth which in an alarming factor for Nike and Lululemon Athletica. Reebok revenue is amounted for $2 billion in 2017. Nike Inc. enjoys a top position in the global athletic shoes, equipment and apparel market. The Washington Post. Other operations are in Argentina, Brazil, India, Italy, and Mexico. Through the interviews, it was established that Nike did have a toxic working environment, where sexual misconduct was rampant. Adidas and Nike both are dominating the social media game at present. According to this, Adidas is the strong competitor of Nike and the second largest shoemaker in the world. 1 shoemaker. However, Nike has got an edge over its competitors owing to several factors. Before discussing Nike competitors, let us know the company background and information. Needless to say, the most important strengths are Nike’s powerful brand and low product cost. Nike competitors analysis Who is Nike biggest competitor? Nike’s top competitors include Anta, lululemon athletica, VF Corporation, Adidas, Reebok, ASICS, FILA, … Annual revenue of Puma is amounted $5.5 billion. Vans is owned by VF Corporation. Innovative Products: Given Nike’s focus on R&D, as mentioned in the strengths section of this analysis, the company is typically on the forefront on product innovation. A management consultant and entrepreneur. However, new entrants required the huge amount for the capital; therefore, Nike has the maximum market share in the footwear industry (Reuters, 2016). The Threats Nike Faces Growing Competition from Strong Rivals Including H&M and Adidas. Several sporting teams are on the brink of collapse. Nike’s main competitor is Adidas which, after the acquisition of Reebok, has become the closest competitor in terms of revenues and market share Adidas AG – The Group’s principal activities are producing and marketing of sports goods. Dorrene, Thanks for your positive feedback, I am glad you liked it. From equipping athletes with the finest sports equipment in the world to continuously improving our own financial performance, Nike dominates its competitors. Nike Inc.’s SWOT Analysis. 3. Nike, Adidas and Reebok and these two companies are the top competitors of Nike Inc. Company: Nike  CEO: John Donahoe Year founded: 1964 Headquarter: Beaverton, Oregon, USA Number of Employees (FY2019): 76,700 Type: Public Ticker Symbol:  NKE Market Cap (Oct 2020): $198 Billion Annual Revenue (FY2020): $37.4 Billion  Profit | Net income (FY2020): $2.54 Billion, Products & Services:   Athlete wear | Apparel | Sports equipment | Leisure footwear | Accessories Competitors: Adidas | Puma | Anta | New Balance | Under Armour | Lululemon | ASICS | V. F. Corporation, Nike swoosh logo is inspired by the Greek goddess of victory, Nike. Some even left their jobs. . Auditor's conclusion. The pandemic has discouraged physical interaction and gathering with sporting events canceled or postponed. It was found by, in the communities. competitors. It was found by Bill Bowerman and Phil Knight in the year 1964. Umbro. Currently, Mark Parker is the CEO of Nike. All rights reserved | contact@bstrategyhub.com | Logo designed by Looka. Nike is so large that many of the company’s suppliers depend on Nike to remain in business. Benchmark and track your performance relative to your competitors. However, the customers of the Nike’s have the brand awareness and this is the reason that the company put more effort in the products. Here’s why. It is because of the athleisure trends and for the high demand during the Olympics. The total number of worldwide Nike stores and factories are 1182. In accordance with Porter’s 5 Forces, Nike has faced competition by using different and distinct capabilities in marketing. The competitive analysis of market share gives Nike a clear edge over Adidas. Thank you Gargi, I have been through business school not so long ago, so I can totally relate to you. The SWOT analysis of Nike discusses the strengths, weaknesses, opportunities and threats of the leading footwear brand - Nike. Although the brand is still in debt, the next few years look promising. According to this, Adidas is the strong competitor of Nike and the second largest shoemaker in the world. I am glad you liked our analysis. In the fiscal year 2020, Vietnam produced 50%, China produced 22%, and Indonesia produced 24% of total Nike’s footwear. The CEO ensures that Nike will help to contribute. Like most big companies, Nike has a number of strengths. Nike Strengths in SWOT Analysis. The company is engaged in development, distribution and marketing its product lines worldwide. Nike's main competitors include Anta, lululemon athletica, VF Corporation, Adidas, Reebok, ASICS, FILA, Puma, Under Armour, Skechers and New Balance. Nike is headquartered in Beaverton, Oregon, USA. The fiscal 2020 proved to be successful for Nike. Nike is known as a brand of sports shoes mainly. Skechers is a designer, manufacturer and marketer of athletic, casual and performance focused footwear for men, women and children in more than 170 countries. 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